|Clean Development Mechanism
The Clean Development Mechanism (CDM) introduced by the Kyoto Protocol provide an additional incentive to
achieve energy efficiency in terms of fuel savings and alternative fuel use by rewarding Greenhouse Gas (GHG)
Emission Reductions, but to be eligible, projects must pass the “additionality” test. That is, they
must demonstrate that emissions would be lower than otherwise (the “baseline” emission scenario). To target
the abatement potential of small-scale projects, it is necessary both to devise efficient ways to assess a
great number of project opportunities and to develop standard procedures to determine the baseline. These
streamlined procedures must be inexpensive and easy-to-use, while producing credible reductions.
Engconsult provides CDM services in the following areas:
Capacity building in CDM: In order to be eligible for CDM, host countries need to be Parties to the United Nations Framework Convention on
Climate Change (UNFCCC) and the Kyoto Protocol. Furthermore, each host country needs to have established a Designated National Authority
(DNA) for the CDM, which co-ordinates the CDM approval process on the national level on behalf of the host country government. Engconsult
provides the following capacity building assistance:
Dissemination of information on CDM in South Asia: Engconsult maintains a website on CDM development in Asia, providing
latest information on CDM development in Asia, Government View on CDM, CDM Activities in specific countries, information on key CDM activities, organization
involved and their contact information, kep people, and CDM resources (reports, national communications etc.)
CDM market study : We perform a varieties of market studies in order to formulate
feasibility or baseline of a CDM project. These include field visits, stakeholders’
consultation, and preparation of guidance documents. Specific experience includes:
- Capacity building of the Government to develop a framework toward Kyoto ratification.
- A baseline greenhouse gas emission (GHG) inventory to prepare a background document for signing the Kyoto Protocol.
- Assist in preparing institutional framework to establish a designated national authority (DNA)
- Capacity building of government departments in terms of staffing needs and trainings in understanding CDM and managing CDM Projects.
CDM in transport sector : Unlike other sectors CDM in transport is the most complicated to design. A major obstacle
is the establishment of a baseline (“that would have occurred in the absence of the project’) e.g. historical and current data deficiencies,
forecasting project uncertainties etc. These problems occur also for other sectors, but especially the transport sector emissions from individual
sources are relatively small, dispersed nature of emissions, linkage to other economic activities (project boundary), its strong relationship with
human behavior makes it difficult to evaluate. Specific experiences include:
CDM in energy efficiency: Energy Efficiency (EE projects) projects under the CDM provide an
additional incentive to achieve energy savings by rewarding GHG Emission Reductions (ERs), but to
be eligible, EE projects must pass the “environmental additionality” test. To target the abatement
potential of small to medium size EE projects, it is necessary both to devise innovative ways to evaluate
huge number of project opportunities and to develop a standard baseline. These procedures must be cheaper
and easy-to-use, while producing marked GHG reductions. Specific experiences include:
- Market study in various Sector.
- Organize a Workshop to build awareness among the stakeholders about the CDM process.